Questions from Auditing and Assurance

Q: Spencer, CPA, has been engaged to audit the fair value

Spencer, CPA, has been engaged to audit the fair value measurements of Christensen & Son, a high-tech company in the Midwest. During the audit, Spencer must obtain evidence that management of Christen...

Q: Cassandra Corporation, a manufacturing company, periodically invests large sums in

Cassandra Corporation, a manufacturing company, periodically invests large sums in investment (debt and equity) securities. The investment policy is established by the investment committee of the boar...

Q: Sevcik Company’s auditor received, directly from the banks, confirmations and

Sevcik Company’s auditor received, directly from the banks, confirmations and cutoff statements with related checks and deposit tickets for Sevcik’s three general-purpose bank accounts. The auditor de...

Q: The schedule on the following page was prepared by the controller of

The schedule on the following page was prepared by the controller of World Manufacturing, Inc., for use by the independent auditors during their examination of World’s year-end financial statements. A...

Q: Phung, CPA, has been engaged to audit the financial statements

Phung, CPA, has been engaged to audit the financial statements of Vernon Distributors, Inc., a continuing audit client, for the year ended September 30. After obtaining an understanding of Vernon&acir...

Q: Describe two or more factors that the auditor should consider in assessing

Describe two or more factors that the auditor should consider in assessing the inherent risk for (a) intangible assets and (b) the property management process.

Q: During an audit engagement, Harper, CPA, has satisfactorily completed

During an audit engagement, Harper, CPA, has satisfactorily completed an examination of accounts payable and other liabilities and now plans to determine whether there are any loss contingencies arisi...

Q: Cole & Cole, CPAs, are auditing the financial statements of

Cole & Cole, CPAs, are auditing the financial statements of Consolidated Industries Company for the year ended December 31, 2018. On April 2, 2019, an inquiry letter to J. J. Young, Consolidated’s out...

Q: Namiki, CPA, is auditing the financial statements of Taylor Corporation

Namiki, CPA, is auditing the financial statements of Taylor Corporation for the year ended December 31, 2018. Namiki plans to complete the fieldwork and sign the auditor’s report about March 10, 2019....

Q: For each of the following items, assume that Josh Feldstein,

For each of the following items, assume that Josh Feldstein, CPA, is expressing an opinion on Scornick Company’s financial statements for the year ended December 31, 2018; that he completed fieldwork...